Glencore dividend flop

HOPES that commodities giant Glencore will resume paying a dividend were not enough to convince investors to buy its shares.

Company chief financial officer Steve Kalmin said it was ‘pretty likely’ it would restore a dividend in 2017 as the company said first half losses narrowed to £279m.

After selling nearly £3.8bn of assets, Glencore says it will have reduced its debts to £12.5-£13.3bn by the end of the year.

But investors were concerned about a £300m hit that it took on hedging on the price of coal and shares fell 3.1pc, or 5.8p, to 184p.

The firm has been hit by the commodity price slump. Glencore’s billionaire chief executive Ivan Glasenberg claimed: ‘Prices came off not because of demand but because of over-supply.’